Answer:
in order for Henry's child to qualify as a dependent, the following requisites must be met:
- since the child is disabled, there is no age limit, but he/she must live with Henry and Henry must pay for at least half of his/her expenses
- the disability must be permanent and total (a letter from a doctor, social service worker, or social service agency that provides proof of this is required
- the child must be Henry's son or daughter, or legally adopted child
- Henry must have earned income (i.e. Henry must work)
- Henry's investment income (besides earned income) must be less than $3,650 during the last year
- Henry must file as single filer or head of household
- Henry must not have received foreign income
Due to scarcity. There exist unlimited wants but only scarce amount of resources to meet those wants so items must be allocated through a system of prices or through exchange.
Answer:
Incremental cost= $61,875
Explanation:
Giving the following information:
Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit
We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.
Make in house:
Cost= 49,500*5.15= $254,925
Buy:
Cost= 49,500*3.90= $193,050
Incremental cost= 254,925 - 193,050= $61,875
Answer:
All of the following are organization-directed benefits associated with offering unconditional guarantees except:
a. the guarantee provides a means to avoid bankruptcy.
Explanation:
Providing or offering customers unconditional guarantees does not help the company to avoid bankruptcy. Bankruptcy arises from inadequate financing resulting from overtrading. Importantly, offering guarantees to customers communicates a clear performance goal to employees to improve service delivery to customers.
